Insurance fraud detection market poised for immense growth
Increased threats and technology adoption will fuel the market's growth to nearly $8 billion by 2024, report says.
The global insurance fraud detection market is expected to grow from $2.5 billion in 2019 to $7.9 billion by 2024, says a recent market research report, Insurance Fraud Detection Market by Component (Solutions (Fraud Analytics, Authentication, and GRC), Service) Application Area (Claims Fraud, Identity Theft, Payment and Billing Fraud, and Money Laundering), Deployment Mode, Organization Size, and Region — Global Forecast to 2024, published by MarketsandMarkets.
Key factors driving the market’s growth include:
- The organizational need to effectively manage huge volumes of identities;
- improving operational efficiency and enhancing the customer experience;
- increasing adoption of advanced analytics techniques;
- and stringent regulatory compliance are driving the market’s drastic growth.
Additionally, the rise in cloud-based services in the insurance sector and increasing frauds have driven market growth, the report states.
Fraud analytics will constitute the largest market size
Fraud analytics is at the center of all insurance fraud detection solutions. The report anticipates that this segment will represent the largest market size during the forecast period.
By utilizing a set of analytical techniques that evaluate enterprises’ systems and databases to identify where fraud can happen, fraud analytics solutions deliver a way to prevent fraudulent practices and meet compliance needs.
SMEs to grow at a higher CAGR
The small- and medium-sized enterprise (SME) segment is experiencing more and more insurance frauds and cyberattacks, which is why MarketsandMarkets expects this sector to grow at a higher CAGR during the forecast period.
Furthermore, insurance fraud detection solutions deployed in a cloud environment will grow at the highest CAGR during the same period.
North America will account for the largest market size
Technology adoption has fueled insurance market growth around the globe. North America, especially, has experienced immense growth in the insurance fraud detection market thanks to popular tech trends such as cloud adoption and the Internet of Things.
While North America is estimated to be the largest revenue-generating region for insurance fraud detection solutions and services in 2019, Asia Pacific (APAC) is gaining momentum.
Smart devices and Bring YourOwn Device (BYOD) development is on the rise in the region. Thus, companies have started adopting insurance fraud detection solutions and services to mitigate insurance claim fraud and identity theft risks.
Related: